Urea: Nagarjuna Fertilizers and Chemicals temporarily shuts ammonia urea

18:21 PM | July 13, 2020 | Agribusiness

Nagarjuna Fertilizers and Chemicals temporarily shut down the ammonia urea plant on 1 July “due to the non-execution of amendment to the escrow agreement” the company said in 2 July notice.

Nagarjuna said that it is working with the lenders and gas supplier for the extension of the escrow agreement. This is understood to be an extension on the contractual agreement wherein the buyer needs to satisfy the terms and conditions before the third party can release the asset or supply on behalf of the gas supplier. 

The company expects to resume operations very soon.

Work at Talcher Fertilisers Limited (TFL) is reported to have been halted owing to technical issues, it was reported in local news reports on 7 July. The project had been awarded to Wuhuan Engineering Company Ltd in September 2019. The Chinese company is reported to be unable to rally necessary labor and equipment due to COVID-19 related disruptions.

In a Press Information Bureau release on 23 June, Shri S.N. Yadav of TFL had said that the COVID-19 virus had delayed the project by about 6 months owing to travel restrictions and shortage of labor but that work had restarted since May and been gathering pace, with the project still set to be commissioned by the deadline of September 2023.